of America near credit card deal with U.S. regulator
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[April 04, 2014]
By Emily Stephenson and Peter
WASHINGTON (Reuters) — Bank of America
Corp is close to settling with a U.S. consumer regulator over the
sale of services sold as add-ons to credit cards, sources familiar
with the talks said.
The second-largest U.S. bank said in an August securities filing
that it had been in discussions with regulators to address concerns
over the sale and marketing of credit card debt cancellation
products and identity theft protection services that it offered
alongside its credit cards.
It added that it may be required to repay or provide other relief to
consumers and also pay penalties to one or more regulators.
News of the potential settlement with the Consumer Financial
Protection Bureau was first reported by the Wall Street Journal,
which also said Bank of America could pay more than $800 million to
settle the allegations against it.
Spokesmen for Bank of America and the CFPB declined to comment.
In recent years, the CFPB has been cracking down on credit-card
companies offering payment protection, credit score tracking and
other add-on products. Since 2012, Capital One Financial Corp,
American Express Co, Discover Financial Services and JPMorgan Chase
& Co all have paid fines to resolve allegations of unfair practices
related to such products.
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The CFPB is continuing to look at add-on products at other firms as
well, one of the sources told Reuters.
(Editing by Andre Grenon and Eric Walsh)
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